CBN new forex policy: SIFAX Group projects improved business performance

Lagos – SIFAX Group, a multinational corporation with diverse interests in maritime, aviation, haulage & logistics, oil & gas and hospitality, has projected an improved business performance in the country’s economy in the second half of the year.

The Group Managing Director, SIFAX Group, Mr John Jenkins, stated this while speaking at the company’s mid-year business performance review session in Lagos.

According to him, this optimism is hinged on the liberal foreign exchange policy announced recently by the Federal Government through the Central Bank of Nigeria.

He explained that the policy would in turn create a friendlier and more conducive environment for businesses to thrive.

The group managing director said that the period between January and June, 2016, has been a very challenging time for businesses in the country, especially, those with substantial interest in the logistics value chain like SIFAX Group.

“The first half of the year has been very challenging for all businesses in the country.

“The previous very stringent control of the foreign exchange regime played a lot of role in the under-performance of various businesses.

“Things are gradually changing as the effect of the new forex policy is beginning to show and we are convinced that the second half of the year will be a lot better,’’ the News Agency of Nigeria (NAN) quotes Jenkins as saying.

On the company’s mid-year performance, the group managing director noted that the various subsidiaries of SIFAX Group recorded sharp decline in business volume with an attendant decrease in revenue and profit.

“Taking into consideration the subsidiaries’ business performances mid-year, it is safe to conclude that SIFAX Group has recorded between 20 and 25 per cent volume decline in the first half of the year 2016 when compared with the same period in 2015,’’ he said.

Jenkins noted that Ports & Cargo Handling Services, the port terminal management arm of the Group, recorded a drop in vessel operations, throughput and gate activities.

“While the percentage of volume decline varies across all measuring indices but on the average, Ports & Cargo recorded approximately a 10 per cent drop in container business operations and about 50 per cent drop in volumes for general cargo goods compared with the first half of 2015,’’ he added.

|The group managing director also said that other subsidiaries in the inland container depot and haulage sub-sectors also recorded a not-too-cheering performance.

“The Group expects a more robust business performance and increase market share in the second half of the year.’’

“This would be accomplished with efficient service delivery, personalised customer management system, bespoke business solutions and aggressive marketing strategy,’’ NAN further quotes Jenkins as saying. (NAN)